Q: Our community will not pay a resident to provide a service to the community, such as leading an exercise class or instructing an art class. I was told that this is a rule in all HOA communities in the area. Is this true? — Caroline

A: In Florida, where I practice law, there is no general rule banning all homeowners associations from paying residents for community services. However, specific restrictions and conditions might apply based on your community’s governing documents. I believe this is similar in most states.

The first step to determine if this restriction applies in your community is to review your community’s governing documents.

That said, directors, officers, or committee members of an HOA are generally not allowed to receive direct payment for their duties in these roles.

However, this restriction does not apply to other types of financial benefits or compensation if certain conditions are met.

For instance, participation in financial gains shared among all or a large number of members, reimbursement for out-of-pocket expenses, or fees authorized by the governing documents or approved by a majority vote of the members are allowed.

This provision does not outright prevent a resident from receiving compensation for providing services like leading an exercise or art class, as long as the resident is not acting as a director, officer, or committee member and the compensation is authorized or at least not forbidden by your community’s governing documents or has been approved by the members.

While the statement that all HOA communities prohibit paying residents is inaccurate, it is probably a local policy or board preference.

There can be a difference between the rules and your neighbors’ perception of your community’s affairs. Your board might reasonably see it as good practice not to hire residents for these roles to avoid accusations of favoritism or unfair compensation.

If you can persuade your board to pay you to lead a class for other residents, I recommend ensuring that all details of any compensation are fully disclosed to the members to prevent issues later.

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